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Barchart
Barchart
Rich Asplund

Sugar Closes Higher on Carryover Support from a Rally in Gasoline Prices

May NY world sugar #11 (SBK24) on Friday closed up +0.35 (+1.61%), and May London ICE white sugar #5 (SWK24) closed up +8.60 (+1.40%).

Sugar prices on Friday settled moderately higher, with London sugar posting a 2-week high.  Sugar prices gained support from Friday's rally in gasoline prices (RBJ24) to a 5-3/4 month high, which extended this week's gasoline rally to about 20 cents/gallon.  The strength in gasoline prices is bullish for ethanol prices and may prompt the world's sugar mills to divert more cane crushing toward ethanol production instead of sugar, thus reducing sugar supplies.  

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